Venezuela Seizes Local Kimberly-Clark Factory

Tyler Durden's picture

Just hours after Kimberly-Clark, the consumer-products giant that owns Kleenex and Huggies, said it will shutter its Venezuela operations after years of grappling with soaring inflation and a shortage of hard currency and raw materials, Venezuela retaliated by announcing it would seize the factory.

Over the weekend, Kimberly-Clark said that the South American nation’s deteriorating economic situation had made “it impossible to continue our business at this time."  The company had made a number of hard-to-find staples in Venezuela such as diapers and face tissues.

As Bloomberg adds, the decision will likely to add to shortages that have gripped Venezuela for the past few years after the ruling socialists capped the price on many consumer basics below production costs." As we have documented repeatedly, desperate shoppers now routinely spend long hours in front of stores to purchase essential products ranging from toilet paper to rice. At the same time, companies face hefty losses on price-controlled goods, while the products are often flipped on the black market for many times their sticker price.

So in retaliation, Venezuela's government announced it had seized the factory.  Labor Minister Owaldo Vera said Monday that the socialist government took the action at the request of the 971 workers at the factory that the company decided to shutter. The seizure follows a similar takeover from 2014 when Clorox announced it was closing its doors.

"Kimberly-Clark will continue producing for all of the Venezuelans," Vera said in a televised statement from the factory surrounded by workers chanting pro-government slogans. That statement was not exactly true: former workers of the company would continue producing under the observation of government management. We doubt this "forced restructring" will survive more than a few months.

Maduro's socialist government accused Kimberly-Clark of failing to properly notify the government of its plans. The Irving, Texas-based company did not comment Monday about Venezuela's actions.

Kimberly-Clark joins Bridgestone, General Mills, Procter & Gamble and other multinational corporations in scaling back operations in Venezuela amid its economic crisis. More will follow.

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Supernova Born's picture

Venezuelans are certainly coming here and Obama and Hillary have limitless free shit for them.

 

Richard Chesler's picture

Ignorant bolivarian negroes will destroy all the manufacturing equipment in less time than a fart leaves a chinchorro.

 

City_Of_Champyinz's picture

Socialists do not have the intellectual capability to run anything, they are driven by their ideology and nothing else matters.  I cannot wait to see how royally they fuck up this factory...

Dutti's picture

Yes, but...

It can go on for quite a while - remember how many years before the Sowiet Union collapsed?

CrazyCooter's picture

Maybe they are going to print their new notes at the factory they took over - it is a clever scheme to create demand for Bolivars!

Regards,

Cooter

mofio's picture
mofio (not verified) CrazyCooter Jul 11, 2016 8:11 PM

Long arm reaching. Chaos for sure.
https://goo.gl/tiZwod

Manthong's picture

Maybe they could stretch supply by putting Clorox in the Huggies so that diapers would not smell for a week or so.

That sounds like a socialist solution.

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) Manthong Jul 11, 2016 9:41 PM

FREE $HIT (WIPING PRODUCTS) FOR EVERYBODY!!!

highly debtful's picture

One production line for bank notes, one for toilet paper. Hmmm. Hope they won't be too close to one another. Could be confusing.

sun tzu's picture

The USSR only survived because it still had factories in Siberia while the rest of Europe was fucked up. Once Europe was rebuilt, the USSR collapsed.

mofio's picture

Agree.

CatsPaw's picture

Socialists know exactly waht they are doing.

It is no coincidence that every time socialists destroy a country, some key people get very rich.

Calling them idiots only gives them an excuse to fail. The idiots are the people who elect them. 

My favorite meme on the subject said "I dont know you understand the definition of the word free".

 

 

American Psycho's picture

Just look at the country, that should be a good indicator. 

rbg81's picture

Let the BLM crowd run it for a while.  Yeah--that's the ticket!

thinkmoretalkless's picture

The black power group is looking for a country....why not give them Venezuela.

rbg81's picture

Yes, they want their own country to rule.  But they also want us to fund it.  If we don't, no doubt they'll resort to cannibalism within weeks.

Katos's picture

No way this can happen in America, all of our manufacturing companies have already moved to Venezuela?

Normalcy Bias's picture

Toilet Paper is worth a LOT of money down there.

squid's picture

Toilet paper IS th emoney down there.

 

Squid

sun tzu's picture

I thought the money was toilet paper

PhilofOz's picture

Toilet paper may become an unnecessary item when the people turn to the Philippine style of cleaning their ass. The latest craze in the Philippines is the toilet bidet attachment.... https://www.youtube.com/watch?v=8Uojy_Htmaw  They all prefer washing their ass with water and this streamlines the process considerably. My wife is a Filipina and I used to laugh when I first heard of their cleaning methods but whe she explained it this way it made a lot of sense....."If you have some filth on you benchtop and want to clean it, what is cleaner, using dry paper and smearing it everywhere or washing it off with water?"

JuliaS's picture

Investors must be shitting their pants.

nmewn's picture

After Maduro announced a mandatory two day work week for the people (read "public employees") who keep the lights on, the water running, traffic lights working etc (because, ya know...in Marxist-socialist utopia Venezuela THOSE ARE THE PEOPLE WHO DO ALL THAT FOR SOME REASON...not private enterprise)...I would hazard a guess that the normal investor will be quite relieved to be free of the burden.

#WaitingOnMillionaireHollywoodLeftistElitesToPickUpTheSlack ;-)

Herodotus's picture

Kimberly-Clark said that Venezuelans were so full of it that there was no way to keep up with the demand.

Supafly's picture

As the ex spouse of a Venezuelan, I can honestly say that there is no breed more full of shit, and I live in South Florida with a bunch of Puerto Ricans, Cubans and well, you get it.  The Venezuelans take the prize, and they all look their best while swirling the bowl.

natxlaw's picture

Me: You bitter?

Supafly: Yep, bit him too.

pathosattrition's picture

Coming soon to a banana republic near you!

nmewn's picture

Let me try this again, it's been months and no one got the inference...

Evita Clinton 2016! ;-)

RovingGrokster's picture

But her (don) Juan Peron has been out of office for 16 years. With Peron and Evita, the succession was direct, just as it has been with the corrupt Kirchners.

 

What bothers me far more is the possibility of the Democrat Party deciding to dump Hillary for Michelle O! We always wanted to be ruled by the African Queen, didn't we? (just look at her vacations and outfits and tell me that's a mischaracterization!)

Ignatius's picture

People gotta be able to wipe they ass, remember that.

toady's picture

That's what Venezuelan fiat is for... there must be a lot of that worthless crap lying around!

darteaus's picture

Can't get a doctor to treat the papercuts.

 

Supernova Born's picture

Hillary wipes her ass with the Constitution.

sun tzu's picture

Hitlery wipes her ass with humans

withglee's picture

Right. Sound money would have prevented that. With each Venezuellan getting his 1oz fair share of gold, they could live 2 weeks.

Big Corked Boots's picture

Clearly they need MOAR socialism in Venezuela. Why do something different?

wet_nurse's picture

What took so long

FX223's picture

There the government goes in with guns and takes everything...here the government goes in with banks and takes everything.

dchang0's picture

It's early yet. The gov't will bring out the guns and take everything soon enough--you did see the articles that the number of armed bureaucrats outnumbers the US Marines:

http://freebeacon.com/issues/now-bureaucrats-guns-u-s-marines/

These bureaucrats do not answer to the citizens and do not see it as part of their mission to protect the people. They are at least one more step removed from the American public than law enforcement and military.

And Obama wants to expand federal control of local police--what for, except to override local control that would listen to the complaints of their local neighborhoods? A cop policing South Central LA is likely to be living in a nearby middle-class Southern California suburb, but an armed federal bureaucrat sent in by DHS may be living in some other state. He won't have ties to the local citizens, and his family is under no direct threat of retaliation if he acts like a jackbooted stormtrooper.

FX223's picture

Agreed...I am preparing as best I can for this eventuality.

 

As I've said many times here, the people are starting to understand their worst enemy isn't over seas, it's your own gubmint.

Money Counterfeiter's picture
Money Counterfeiter (not verified) FX223 Jul 11, 2016 8:33 PM

More cheap whores for the Zionist.

darteaus's picture

Good luck getting the employees to work - for free!

And the suppliers to provide raw materials - for free!

And all that electricity - for free!

Oh, you'll just have the army point guns?  That worked so well in Cuba, China, USSR, etc.

Socialist hate creating another prison camp - formerly known as Venezuela.  Will the Socialists in the US notice the death of the innocent?